Chapter 1 Chapter 2

Project Defined: A temporary endeavor undertaken to create
a unique product, service, or result.
Major Characteristics of a Project
• Has an established objective
• Has a defined life span with a beginning and an end
• Involves several departments and professionals
• Involves doing something never been done before
• Has specific time, cost, and performance requirements
Projects should not be confused with everyday work.
A project is not routine, repetitive work.
Program Defined: A group of related projects designed to accomplish
a common
goal over an extended period of time.
Why organization need to understand their strategy
So they can make appropriate decisions and adjustments.
So they can be effective project sponsors
contributes to the firm’s mission in order to gather their
continued support.
Strategic Management Defined: Is the process of assessing “what
we are” and deciding and implementing “what we intend to be and
how we are going to get there.”
Is a continuous, iterative process
long-term plan of action.
Two Major Dimensions of Strategic Management:
-Responds to changes in the external environment
-Internal responses to new action programs aimed at enhancing the
competitive position of the firm.

Program Management Defined: A process of managing a group of The sequence of activities of the strategic management
ongoing, interdependent, related projects in a coordinated way to process is:
achieve strategic objectives 1. Review and define the organizational mission
" what we want to become " ' identify the scope '
2. Analyze and formulate strategies
Project life cycle:
-what needs to be done to reach objectives
defining Planning Executing closing -formulation includes determining and evaluating alternatives
Goals schedules Status reports Train customer
Transfer documents
3. Set objectives to achieve strategies
Specifications budges Changes
Tasks resources Quality Evaluation 4. Implement strategies through projects
Lessons learning
responsibilities risks forecasts
staffing Characteristics of Objectives
1. Specific 2. Measurable 3. Assignable
The Challenge of Project Management 3.realistic 4. Time related
1. Manages temporary, non-repetitive activities
2. Arranges resources for the project. The Need for a Project Priority System:
3. Is the direct link to the customer. Problem 1: The Implementation Gap
4. Works with a diverse group of characters. Problem 2: Organization Politics
5. Is responsible for performance and success of the project. Problem 3: Resource Conflicts and Multitasking
6. Must encourage the right people at the right time to address
the right issues and make the right decisions. Benefits of Project Portfolio Management:
• Builds discipline into project selecting process
(Agile PM): it's not a traditional way for project management • Links project selection to strategic metrics
processes to develop software • Balances risk across all projects
Focuses on active collaboration between the project and customer • Improves communication and supports agreement on
breaking projects into small functional pieces project goals
work with small team Project Classification
involve customer 1. compliance “must do” projects.
2. Strategic 'support the organization’s long-run mission'
with chapter 2 3. operational 'improve efficiency of delivery systems, reduce
product costs, and improve performance'
Two Multi-Criteria Selection Models
Selection Criteria
Checklist Models 1. Financial Criteria
Multi-Weighted Scoring Models • Payback
• Net present value (NPV)
Weighted scoring criteria seem the best alternative 2. Nonfinancial Criteria • Projects of strategic
because: importance to the firm
• They reduce the number of wasteful projects using 3. Two Multi-Criteria Selection Models
• Checklist Models
resources. • Multi-Weighted Scoring Models
• They help to identify project goals Nonfinancial Criteria
• They help project managers understand how their To capture larger market share
project was selected, To make it difficult for competitors to enter the market
To develop an enabler product
To reduce dependency on unreliable suppliers
 Chapter 3
Advantages and Disadvantages of using Functional
Organization: Advantages
1. No change: Projects are completed within the
basic functional structure
2. Flexibility
3. Easy post-project transition
Disadvantages
1. Lack of focus
2. Poor integration
3. Slow
4. Lack of ownership
Strengths and Weaknesses of the Dedicated Project Team:
Strengths:
1. Simple 2. Fast 3. Organized 4. Cross-functional
integration
Weaknesses: 1. Expensive 2. Internal conflict
2. Difficult post-project transition
Matrix management is a hybrid organizational form in
which horizontal project management structure is covered
on the normal functional hierarchy
two chains of command:
1. functional lines 2. project lines.
Matrix Arrangement:
The matrix structure is designed to utilize resources
optimally.
It provides dual focus between functional/technical
Different Matrix Forms:
1. Balanced matrix: concerned with how it will be
accomplished
2. Strong matrix: The project manager controls most
aspects of the project
Advantages and Disadvantages of Matrix Management:
1. Efficient : Resources can be shared across multiple
projects
2. Strong project focus
3. Easier post-project transition
4. Flexible :flexible utilization of resources
Disadvantages: 1. Dysfunctional conflict :between functional
managers and project managers 2. Infighting 3. Stressful
:Project participants have at least two bosses. 4. Slow
Organizational Culture: Is a system of shared norms,
beliefs, values, and assumptions that blinds people
together, thereby creating shared meanings
By Murtada
Performs several important functions in organizations.
• Provides a sense of identity for its members
• Helps legitimize the management system
• Clarifies and reinforces standards of behavior
• Helps create social order
Cultural Dimensions:
Member identity: The degree to which employees
identify with the organization as a whole rather than
with their type of job or profession.
Group emphasis: work activities in groups or teams.
People focus
Unit integration: encouraged units or departments to
coordinate with each other
Control: The degree to which rules, policies, and direct
supervision are used to oversee and control employee
behavior.
Risk tolerance: The degree to which employees are
encouraged to be aggressive, innovative, and risk
seeking.
Reward criteria: rewards, promotions and salary
increases
Conflict tolerance: The degree to which employees are
encouraged to air conflicts and criticism openly.
Means-ends orientation: management focuses on
outcomes rather than on techniques and processes used
to achieve results.
Open-systems focus: The degree to which the
organization monitors and responds to changes in the
external environment.
How to Identify Cultural Characteristics:
•Study the physical characteristics of an organization.
• Read about the organization.
• Observe how people interact within the organization.
• Interpret stories and folklore surrounding the
organization.
“A riverboat trip” is a metaphor describing the
relationship between organizational culture and project
management.